This report covers New Tourism Policy of Gujarat, 2015. This Policy covers Framework, Incentives, Initiatives, Focus area for Travel, Tourism & Hospitality. Tourist Inflows in Gujarat has risen from 6.16 million in 2002-03 to 32.7 million in 2014-15 with a CAGR of 13.7%. This Tourism Policy has a objective to position Gujarat as a vibrant tourist destination, make Gujarat one amongst the top five tourist States of India in terms of tourist footfalls and promote employment opportunities for additional two million peoples by 2025.

1. GUJARAT TOURISM
POLICY, 2015
October, 2015

2. CONTENT
1. Gatisheel Gujarat
2. Tourist Inflow
3. Tourism Policy
a. Capital Investment Subsidy
b.Interest Subsidy
c. Other Incentives
d.Mega Tourism Units
4. Other Initiatives

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GUJARAT– GATISHEEL GUJARAT
The Vibrant State of Gujarat, a veritable Growth Engine of India, accounts for
about six percent of the total geographical area of the Country and five
percent of its population.
Characteristic of buoyant economy, the State Domestic Product (SDP) growing
at an average growth rate of nearly 10% since 2005, is higher than the national
average. Carrying forward the rich legacy of the immediate past, the State
Government has embarked upon a flagship programme of Gatisheel Gujarat
further fuelling all-round growth and development.
CONNECTIVITY
Strategically located on the west coast of India, Gujarat is well connected to
some of the major cities of the world by air and sea routes. It has one of the
highest number of airports/airstrips numbering 17 in all- including an
international airport at Ahmedabad and two more international airport will
come soon.
Further, with a strong port infrastructure backbone, it has some 42 ports along
a 1,600 km coastline, over 5,000 km of rail network, about 77,000 km of
motorable roads and 24 x 7 power supply.

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TOURIST INFLOW
Tourist Inflows in Gujarat has risen from 6.16 million in 2002-03 to 32.7 million
in 2014-15 with a CAGR of 13.7%.
Source: GITCO
During FY15, 19.2 million Business Travelers visited Gujarat registering a
growth of 12.38%, Business travelers account for nearly 59 per cent of the net
tourist inflow in to this industrialized state, leisure travelers grew by 17.7 % to
2.4 million. Spiritual tourists account for nearly 31 per cent of the tourist inflow
at 10.2 million, growing by 16%.
12.34
14.12
15.81 17.01
19.81
22.36
25.41
28.79
32.7
0
5
10
15
20
25
30
35
06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15
Millions
Tourist Flow in Gujarat-2015 [in Mn]
59%
7%
31%
3%
Break Up of Tourist Inflows- 2015
Business
Leisure
Spritual
Other

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GUJARAT TOURISM POLICY
Gujarat is bestowed with great geographical diversity, from the ethereal salt
encrusted desert to the expansive wetlands, pristine beaches to languid
valleys, arid grasslands to lush forests. From Dholavira, one of the first cities in
the world, to the first prototype of “Smart City” in India
This Tourism Policy has objective to position Gujarat as a vibrant tourist
destination, make Gujarat one amongst the top five tourist States of India in
terms of tourist footfalls and promote employment opportunities for
additional two million peoples by 2025.
TOURISM UNITs
Tourism units means a legal entity providing any service related to travel and
tourism. Following units would be considered as Tourism Units:
a. Hotels (One-Star to Five-Star Deluxe)
b. Heritage Hotels
c. Apartment Hotels
d. Motels
e. Convention Centres
f. Resorts
g. Tented Accommodation
h. Tourism & Hospitality Training Institutes
i. Amusement Parks/ Water Parks /Theme Parks
j. Adventure Sports
k. Wayside Amenities

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CAPITAL INVESTMENT SUBSIDY
Eligible Capital Investment
Admissible
Subsidy
Maximum
Limit
Investment upto ` 50 Crores 15% ` 7.50 Crores
Investment above ` 50
Crores
15% ` 10.00 Crores
Tented accommodation
(with minimum investment
of ` 0.20 Crores)
20% ` 0.15 Crores
with TCGL Equipment worth
` 1 Crores and above for
Adventure & Water Sports
and Golf Equipment for
Public Golf Courses
registered
10% ` 0.50 Crores
These incentives are for New Tourism Unit and/or Existing Tourism Unit
undergoing expansion.
Existing Tourism Unit Undergoing Expansion
Existing Tourism Unit taking up expansion of more than fifty percent of
its existing capacities. Only one expansion project of an existing tourism
unit will be eligible for assistance during the operative period of the
Policy.
Additional Capital Subsidy
a. New Tourism Units coming up within the Corporation limits of
Gandhinagar [State Capital] and also adjoining areas falling within
the radius of 20 kms but within the District of Gandhinagar.
b. New Tourism Units at Yatra Dhams such as Ambaji, Dwarka,
Dakor, Junagadh, Somnath, Palitana and such other places as may
be recommended by GPYVB

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c. New Tourism Units at Eco-tourism Centres of Gujarat including
Nalsarovar, Polo, Dangs, Jambughoda and such other places as
may be notified
d. New Tourism Units owned and managed by women
entrepreneurs and those belonging to SC/ST categories as also the
differently-abled
Interest Subsidy
PARTICULARS INCENTIVES
MAXIMUM
AMOUNT
In Municipal Corporation 5% of the Loan Amount ` 25 Lakhs
Other than Municipal
Corporation
7% of the Loan Amount ` 30 Lakhs
Interest Subsidy is for the period of Five years
Interest Subsidy on Heritage Hotels
o 7% of the loan amount with maximum amount of ` 30 Lakhs per annum
for a period of five years.

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OTHER INCENTIVES
Registration / Stamp Duty Concession
Eligible Tourism Units will qualify for 100% reimbursement of Stamp Duty and
Registration Fee on sale/lease/transfer of land for the first transaction only.
Exemption from Luxury Tax
The exemption from Luxury Tax will be applicable to Eligible Tourism Units for
a period of five years from the date of commencement of commercial
operations or the date of completion of expansion. The incentive will be
reviewed when GST is introduced.
Exemption from Entertainment Tax
The exemption from Entertainment Tax will be available for a period of five
years. The incentive will be reviewed when GST is introduced.
Exemption from Electricity Duty
There will be complete exemption from paying Electricity Duty for a period of
five years for new tourism units only. For existing units, the Electricity Duty
shall be charged as per industry rates. [Appropriate notification yet to come]
Support for Sustainable Tourism
Assistance will be extended to eligible tourism units up to 75% of the cost of
carrying out Energy Audit by a recognized institution/consultant, Water
Harvesting / Conservation and Environment-friendly practices like Green
Buildings, Solar and other Renewable Energy measures, to a maximum amount
of ` 50,000 per unit.

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Incentive for Promotion of Innovation
The Policy proposes to give a fillip to innovation by providing an incentive to
project meeting any one of the criteria
a. Technologically introduced first time in the State
b. Significant leveraging of Information Technology
c. Having negligible carbon footprint
Project Cost No. of Persons Directly
Employed
Incentive Amount
Investment between
` 10-50 Crore
50 ` 10 lakh
Investment between
` 1-10 Crore
30 ` 5 lakh
Support for Marketing and Promotion
The incentive of 50% of the space rent actually paid subject to a maximum of
`30,000 per national event or ` 75,000 per international event for taking part
in various national and international tourism exhibitions or fairs or marts.
The untapped / under tapped potential of tourism in the State will be unlocked
by suitably incentivizing the organization. FAM Tours & Travel Marts will also
be organized periodically.
Skill Development
As per UNWTO, Today worldwide, one in eleven jobs may be ascribed to the
tourism industry. Gujarat Government has special focus on employment
generation with a special focus on youth, women, differently-abled and SC/ST.
o Reimbursement of 100% of Course Fees up to a maximum of ` 10,000
per person for course duration of a fortnight or more. [Courses include
for personnel working in hotels, resorts, restaurants, transportation

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booking, marketing, tourist guide, ticketing and any other related course
as notified]
o Training to be imparted to Tourist Guides hailing from the local area with
a monthly stipend of ` 5,000 to all the guides registered
Incentive for ICT Enablement & Research in the
Tourism / Hospitality Industry
The State Government will duly facilitate and support international and
national-level conferences, exhibitions and other events in Gujarat for the
promotion of usage of ICT in Tourism Sector. For conducting such
conferences/events would be provided to the maximum limit of ` 5.00 lakhs
per event
Apart from basic tourist data, there is a need to methodically carry out regular
market studies/research intensively to understand the emerging trends in
tourism as also to appreciate the travel patterns of the tourists visiting Gujarat.
Financial assistance up to the maximum limit of ` 5.00 lakhs will be provided to
Recognized Tour/ Hotel Associations/ Chamber of Commerce to carry out
market research studies on travel and tourism/hospitality sector in Gujarat.

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MEGA TOURISM UNITS
Projects capable of creating new employment of more than 150 persons with
new investment of ` 75 Crores and above (excluding the cost of land) will be
construed as Mega Tourism Units. The proposals of Mega Tourism Units would
require due approval of the State-Level Empowered Committee (SLEC).
Hotels and Resorts, Multiplexes and Malls shall be excluded from the definition
of Mega Tourism Unit. Any type of Mega Tourism Units like Theme Parks,
Amusement Parks, Water Parks, etc. meeting the qualifying criteria of Mega
Tourism Units will be eligible.
Incentives for Mega Tourism Units
a. 100% reimbursement of Stamp Duty and Registration Fee on
sale/lease/transfer of land for the first transaction only
b. Capital Subsidy of 15% of Eligible Capital Investment (excluding the cost
of the land) subject to a ceiling of ` 20 Crores.
c. Exemption from Luxury and Entertainment tax for a period of seven
years
d. Exemption in Electricity Duty would be for a period of five years
[Mega Tourism Units shall not be entitled to any interest subsidy]

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OTHER INITIATIVES
Development of Wayside Amenities
It is proposed to develop wayside amenities along with public conveniences at
an interval of about 75 K.M. on selected major arterial roads on a pilot basis to
be progressively extended to other major trunk roads.
Home Stay Policy
The State Government announced the Incentives and Guidelines policy for
Registration of Home-stay Establishments on 20/11/2014.
Tourist Police
On the lines of traffic police, an effort will be made to evolve the institution of
Tourist Police to suitably assist, facilitate and guide the Tourists as also to
safeguard their interests.
Excellence Awards
Annual Tourism Awards will be instituted for recognition of excellence in
tourism products and services as also for contribution to the growth of tourism
in the State.
a. Best Entrepreneur in Tourism
b. Best Lady Entrepreneur in Tourism
c. Best Start-up in Tourism
d. Most Innovative Tourism Project
e. Best ICT-enabled Tourism Project
f. Best-maintained Tourism Asset (Swachhta Puraskar)
g. Recognition to Hotels, Tour Operators, Agents
[Significantly contributing to the growth of Tourism in the State]

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